• Energy Research

This paper provides an overview of the treatment of technological change in economic models of environmental policy. Numerous economic modeling studies have confirmed the sensitivity of mid- and long-run climate change mitigation cost and benefit projections to assumptions about technology costs. In general, technical progress is considered to be a noneconomic, exogenous variable in global climate change modeling. However, there is overwhelming evidence that technological change is not an exogenous variable but to an important degree endogenous, induced by needs and pressures. Hence, some environmenteconomy models treat technological change as endogenous, responding to socio-economic variables. Three main elements in models of technological innovation are: (i) corporate investment in research and development, (ii) spillovers from R&D, and (iii) technology learning, especially learning-by-doing. The incorporation of induced technological change in different types of environmental-economic models tends to reduce the costs of environmental policy, accelerates abatement and may lead to positive spillover and negative leakage.

This paper provides an overview of the treatment of technological change in economic models of environmental policy. Numerous economic modeling studies have confirmed the sensitivity of mid- and long-run climate change mitigation cost and benefit projections to assumptions about technology costs. In general, technical progress is considered to be a noneconomic, exogenous variable in global climate change modeling. However, there is overwhelming evidence that technological change is not an exogenous variable but to an important degree endogenous, induced by needs and pressures. Hence, some environmenteconomy models treat technological change as endogenous, responding to socio-economic variables. Three main elements in models of technological innovation are: (i) corporate investment in research and development, (ii) spillovers from R&D, and (iii) technology learning, especially learning-by-doing. The incorporation of induced technological change in different types of environmental-economic models tends to reduce the costs of environmental policy, accelerates abatement and may lead to positive spillover and negative leakage.

Abstract The continuously accelerating global energy demand leads to increased public concern about climate change. The international community expects China, the world's largest energy consumer, to play a leading role in the energy transition, especially since the United States has withdrawn from the Paris Agreement. This special issue on “Energy Demand in Emerging and Developing Economies: Measurement, Policy Interventions and Evaluation” improves international understanding of the patterns of energy demand in China by presenting recent experimental and empirical research following the Beijing Energy Conference in 2018. The main purpose of this introductory article is to present recent research advances by summarizing new findings and insights from this special issue, combined with recent literature. It shows that China's rising energy demand and energy transition practices have led to numerous policy interventions, which provides rich observational data on behavioral change and offers an “experimental window” with large opportunities for scholars. Beyond the traditional topics of residential and industrial energy demand and its drivers, an increasing number of studies focuses on energy policy evaluation or quantify the environmental and climate consequences of energy consumption. This new line of research, supported by policy-oriented model-based quantitative analyses, experimental approaches and econometric analyses using multi-source disaggregated data, offers new insights into various aspects of China's energy demand.

Abstract The continuously accelerating global energy demand leads to increased public concern about climate change. The international community expects China, the world's largest energy consumer, to play a leading role in the energy transition, especially since the United States has withdrawn from the Paris Agreement. This special issue on “Energy Demand in Emerging and Developing Economies: Measurement, Policy Interventions and Evaluation” improves international understanding of the patterns of energy demand in China by presenting recent experimental and empirical research following the Beijing Energy Conference in 2018. The main purpose of this introductory article is to present recent research advances by summarizing new findings and insights from this special issue, combined with recent literature. It shows that China's rising energy demand and energy transition practices have led to numerous policy interventions, which provides rich observational data on behavioral change and offers an “experimental window” with large opportunities for scholars. Beyond the traditional topics of residential and industrial energy demand and its drivers, an increasing number of studies focuses on energy policy evaluation or quantify the environmental and climate consequences of energy consumption. This new line of research, supported by policy-oriented model-based quantitative analyses, experimental approaches and econometric analyses using multi-source disaggregated data, offers new insights into various aspects of China's energy demand.

Abstract Many countries, especially in Europe, have ambitious goals to transform their national energy systems towards renewable energies. Technological change in both renewable production and efficient use of energy can help us to make these targets come true. Using a panel of German firms linked to the PATSTAT patent data, we study inventions in both types of energy technologies and investigate the role prior inventions as technology-push factors play for both types of technologies. In addition and more importantly, we study whether previous inventions in non-energy technologies also stimulate technical change in energy technologies and whether this effect differs between energy conservation and renewable energy technologies.

Abstract Many countries, especially in Europe, have ambitious goals to transform their national energy systems towards renewable energies. Technological change in both renewable production and efficient use of energy can help us to make these targets come true. Using a panel of German firms linked to the PATSTAT patent data, we study inventions in both types of energy technologies and investigate the role prior inventions as technology-push factors play for both types of technologies. In addition and more importantly, we study whether previous inventions in non-energy technologies also stimulate technical change in energy technologies and whether this effect differs between energy conservation and renewable energy technologies.